Calendar

GBPCAD – Trading many boxes setup

When many boxes are about the same high or low, it is a clue to us (in Tflow®) that there might be a potential setup.

First caught my eyes when GBPCAD was doing a flattish consolidation of 4 H4 boxes.

H4 boxes consolidation with downflow-1234

4 boxes of consolidatoin

HTF Resistance level

HTF levels show resistance

Some levels that are important

I would be looking at a firmed closed (ideally a day close) below round number 2.03 (this is also current price nearest support). There’s some historical support around 2.0230-50 (also F6) which needs to be broken) for price to move further south.

A retracement towards F3 and last friday low could be some levels to potential get a discount once there’s a firm close below 2.03.

F6 and some support levels need to be cleared

Price might test back this trendline it broke, if below, might see 1.9850-1.99 as strong support (that’s 2006 low). Don’t forget 2.00 round number marker.

Some potential support levels to note

Updated on 1 Oct 10.42am: Managing GBPCAD

I put up a chart showing my entries. You could also see my thoughts in comment section (scroll down).

Now, it’s about managing of trades. Still stick to plan that strong support will be at 2.00 (round number) and also around 1.9850-1.99. After this post I will be shifting SL to break even, because there is a day close below 2.0170 (recent low). Do appreciate if you could let me know your trading journey on this trade.

Thanks @william, I made a mistake, and rectified already, should be 2006 low.

@elaine yes there was a close below 2.03, but by 6 pips approximately. So no firm close. So expect some retracement. This retracement could also triggered the higher level sell limit I’m waiting, but again any sell limit, I will only do small size/risk

Price action trading can be easy with Tflow®
Price action trading works very well when currency trader combines price information into a rule based approach. In this post, we look at price action ‘boxes’ drawn on MT4 to visualise trend. Example with EURCAD.